Fitch Releases Non-Rated Descriptive Report on The Village at Gleannloch Farms, TX.

TAMPA -- Today, Fitch will release its non-rated descriptive report on approximately $58.26 million Health Facilities Development Corporation of Central Texas Retirement Facilities Revenue Bonds (The Village at Gleannloch Farms, Inc. Project), Series 2006A-C. Fitch's descriptive credit report provides analysis of significant credit factors and includes Fitch's evaluation of the strengths and risks surrounding this credit. No request was made for a rating on this transaction, and Fitch did not review all information or complete all procedures necessary to reach a final credit rating. Generally, Fitch regards unenhanced debt issued with financial characteristics similar to the described facility as being below investment grade. The bonds are expected to sell during the week of Dec. 4, 2006 via negotiation through Ziegler Capital Markets Group.

The Village at Gleannloch Farms, Inc. will use the proceeds of the 2006 A-C bonds, together with $9 million of resident deposits, $2.44 million anticipated earnings on trustee-held funds and $1.085 million equity from Lutheran Social Services of the South (LSSS), for the purposes of constructing a start-up continuing care retirement community to be known as The Village at Gleannloch Farms (the Village), in Spring, Texas, approximately 20 miles north of Houston.

The primary strengths of the project include a favorable location in the master planned community of Gleannloch Farms, favorable service area demographics characterized by solid population growth and sound economy, sound forecasted liquidity of over 420 days cash on hand in 2012, not-for-profit sponsorship of LSSS and good competitive position. In addition, Fitch views the management and development experience of Greystone Communities and Greystone Development Company II, LP favorably.

Main credit concerns include the relatively low home values in relation to the weighted average entrance fees, traditional risks associated with start-up projects such as construction and fill-up delays, and a heightened risk to a downturn in the local housing market due to the differential between the housing values and entrance fees.

Fitch believes that start-up retirement communities do not possess the credit profile to be rated in the investment grade category. The redemption of the $20.5 million series 2006C bonds and $2.0 million series 2006B bonds from initial entrance fees versus the total size of the bond offering is in line with what Fitch typically sees in start-up financings.

For a copy of Fitch's credit analysis, visit the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.